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The Dollar is falling against the Yen as the momentum of the stock recovery recedes

Economy News _ Baghdad

The Dollar fell against the Yen on Wednesday, shedding its earlier gains as the momentum of the stock market recovery lost momentum, reducing risk appetite.

The dollar fell 0.4 percent to 109.155 yen. The US currency hit a high of 109.720 yen earlier on Wednesday as equity markets rose, with the Nikkei gaining gains, reversing the recent rally on Wall Street.

But the dollar slipped as Nikkei, which was up 3.4 percent, shed most of its gains on concern about further declines in US equity markets.

The dollar index, which tracks the performance of the greenback versus six major currencies, recorded a slight drop to 89.530 after hitting a two-week high of 90.034 in foreign markets.

The euro was up 0.1 percent at $ 1.2391 after falling to a two-week low of 1.2314 in the previous session.

The Australian dollar, under pressure during risk aversion, dropped 0.5 percent to $ 0.7868.

Sterling was little changed to settle at $ 1.3951 after touching a low of $ 1.3838 in foreign trade, the lowest level since Jan. 19.

The Swiss franc, which is a safe haven like the yen, rose 0.1 percent to 0.9348 francs to the dollar after losing 0.45 percent in foreign trade.